BSA(Qld) claim. Anyone had experience?

[Garry K]

Tennat in our new (1 yr old) IP in SEQ reported some water leaking in the ceiling.

Investigation revealed many broken roof tiles, and thought to be broken by the builders (et al). Unfortuanetly builder is in liquidation

We originally had a temporary repair with silicon, whilst we submit a claim under builders insurance to BSA. We sent claim in to bSA last week.

However it turns out tepmporary repairs not working and new investigation reveals 45 tiles needing urgent repair. Cost is $920.
Ceiling is of course also damaged from leak.

REA advises soemtimes it takes BSA to approve claims, and I can't wait that long to have tiles repaired.

We are thinking that we should just get tiles fixed, pay it ourselves, and submit a claim to insurance co to cover. Do have a concern though that the insurance co may not pay the claim and say it's for BSA to cover it.

Any comments/suggestions?

GarryK

 

[alexlee]

Hi, Garry.
I had a claim with the BSA (builder didn't put waterproofing membrane in part of the roof: water leaked down from the cornices and wall/ceiling joins and wrecked the cement). Took over a year from when the leak was first noticed to when the BSA finally approved works to fix the thing, mainly because the builder ignored notices, and the BSA was slow to decide they'll fix it.

I had a couple of months vacancy on the property while waiting for the BSA. THAT is claimable via body corp insurance. The rectification works eventually cost about $12,000 (according to the BSA scope of works) so I'm glad the BSA came through in the end.

The advice I got from some experienced maintenance guys was do NOT go and get the thing fixed yourself because then BSA might deny your claim AND insurance will deny your claim. BSA will say you can't prove the damage because they've never inspected it, and your landlords / body corp insurance will deny the claim because they'll say it's a structural thing related to the builders.

My advice would be to wait until the BSA gets back to you. They're slow so chase them up.
Alex

 

[Garry K]

Thanks heaps Alex.

You confirmed my concerns.

GarryK

 

[alexlee]

Hi Garry K,
Just thought I'd update you on this. I just received word that the body corp insurnace has REJECTED my claim for loss of rent. They said that as the damage was not their fault (fair enough, it's the builders and BSA has covered it) they're not responsible for the loss of rent either. They suggested I take it up with the developer. Obvious the developer isn't around to pay it, otherwise BSA would have had to do the rectification!

I'm going to contact the BSA and ask them about it. Will update you.
Alex

 

[Garry K]

Thanks Alex

My situation going from bad to worse.

RE Agent had an abusive phone call from tenants (young lady) father. Apparently she has asthma and because of the roof leaking, mould has developed, which is making her ill.
RE Agent just wants me to fix the roof, which I am certainly not keen to do.

Going to contact BSA today to explain situation and see if they can fast track it.

GarryK

 

[alexlee]

All due respect to the tenant, but if you fix the roof yourself, you run the risk of the BSA rejecting your claim because you can no longer prove that the problem was just due to the builder's negligence.
Alex

 

[Lplate]

GarryK

We found the BSA inspectors to be real diplomats (sic) when dealing with builders and slower than moss growing, even where the fault was substantial and obvious from a visual inspection.

What could happen is that the tenant vacates, with or without going through due process. Reality is that you would have buckley's chance of obtaining redress against the tenant in that case. Then you would be in a fix renting it prior to repair and you will be up for the agent fees again.

The BSA has quite enough power to be proactive however it chooses an easy path (for it!).

I would be onto your local State MP pronto by fax and follow-up phone call. This is a defect that immediately affects livability of the house. What relevance is it to you that the builder is in liquidation (apart from where you send complaining letters), it is firmly in the BSA's court to resolve in a timely manner. It needs to get to higher on its priority list.

As a postscript, be aware that others coming along later to install cable TV or to do other work have been known to break tiles too. I can attest to this having had a lot of damage done to a terracotta tiled roof, especially the ridge tiles, by a gorilla installing cable TV. Of course the tenant didn't seek approval and we found out during the next rain storm when it was too late to prove anything.

 

[emu]

FIX IT NOW
Get a qualified tradesman in before it costs you thousands, you can chase the builder later, you will be happy theres no futher damage and your tenants will be grateful for your quick action.( slow action i just relised how far back this goes)

Sometimes you have an obligation to look after your tenants first and your pocket later.

 

[alexlee]

FIX IT NOW
Get a qualified tradesman in before it costs you thousands, you can chase the builder later, you will be happy theres no futher damage and your tenants will be grateful for your quick action.( slow action i just relised how far back this goes)

Sometimes you have an obligation to look after your tenants first and your pocket later.

I'd agree with Emu, but just be aware that if you fix it yourself, the building and the BSA will probably reject your claim because you can no longer prove the damage was the builder's fault. (Circular reasoning but that's what they do.)

With my waterproofing issue, I've lost maybe $2k from loss of rent (which I'm going to try to chase the BSA for) but the repairs (according to the BSA rectification notice) was TWELVE thousand. So in my case, I'm happy I didn't repair it myself. Really depends on how much the repairs are. If the repairs cost the same as the potential loss of rent....
Alex

 

[Ricardo29]

as a general insurance rule, you are quite welcome to fix buildings/property
( i do not include m/vehicles in this) if they need urgent or immediate repair.
it is also a 'requirement of a policy holder' to make safe property and ensure no further damage likely.
insurance companies do not always send assessors to property claims.
the repair report should be detailed enough to explain what happened, why, what was repaired etc, and this is the proof in itself. take photos yourself if concerned.

i would try get a verbal from the BSA. i wouldnt trust them to act prior to the second coming, so would ensure you cover your tracks, have the problem fixed, take photos, and ensure the repair report is clear/concise/written as to be no doubt what occured, in your favour of course.